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GRAINS-Corn near 1-week low on U.S. planting pace, Brazilian crop worries limit losses

05/10/2021 22:25
GRAINS-Corn near 1-week low on U.S. planting pace, Brazilian crop worries limit losses

Corn down ahead of key U.S. supply-demand estimates

U.S. corn planting at 67%, as of Sunday, above average pace

AgRural cuts production estimate for Brazil's corn crop

Recasts, adds quote in paragraphs 3-4, details on Brazilian corn output

By Naveen Thukral

- Chicago corn futures slid for a second consecutive session on Tuesday, hitting their lowest in almost one week as rapidly progressing U.S. planting weighed on the market.

The corn market is taking a break after a strong rally, ahead of the widely watched World Agricultural Supply and Demand Estimates (WASDE) to be published by the U. S. Department of Agriculture (USDA) on Wednesday.

"The May WASDE is always a significant report for the market because it collates the USDA's worldwide thinking on the prospective season," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

"And, those global estimates can potentially make the market's expectations anchor in a completely different place."

The most-active corn contract on the Chicago Board Of Trade (CBOT) Cv1 fell 0.5% to $7.08-1/2 a bushel, as of 0205 GMT, after dropping to its lowest since May 5 at $7.03-1/4 a bushel earlier in the session.

Soybeans Sv1 lost 0.4% to $15.80-1/2 a bushel and wheat Wv1 gave up 0.7% to $7.25-1/4 a bushel.

The USDA said U.S. farmers had planted 67% of their intended corn acres as of Sunday, matching the average estimate in a Reuters analyst poll.

In a report released after the market closed on Monday, the agency said corn planting progress was up from 46% a week earlier and well ahead of the five-year average of 52%.

The decline in corn prices was limited by expectations of lower output in Brazil.

Brazilian agribusiness consultancy AgRural on Monday said it cut its production estimate for the country's second corn crop in the Center South region due to a prolonged drought that worsened in the first week of May. nL1N2MX163

Farmers there are now expected to reap 65.1 million tonnes of second corn, down from 73 million tonnes estimated on April 19, according to a statement. At the same time, AgRural said average yields are now seen at 84.1 bags of 60 kilograms each per hectare, the lowest in three years.

Commodity funds were net sellers of CBOT corn, wheat, soybeans and soyoil futures contracts on Monday and net buyers of CBOT soymeal, traders said. COMFUND/CBT

(Reporting by Naveen Thukral; Editing by Subhranshu Sahu)

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